Content
·CRR
·Native DEL Coin
·The CRR parameter when creating a coin
·Formulas for determining the value of coins
Calculating the cost of buying a coin
Calculating the cost of selling a coin
Calculation of the current price of 1 coin
CRR
A distinctive feature of the Decimal blockchain is the specifics of the economic model of coins. All the advantages follow from it:
1.simple coin issue,
2.the ability to exchange them for any other within
3.networks, commission payment with any coins of the Decimal ecosystem.
Native DEL Coin The native DEL coin, in addition to the traditional ones, performs the function of providing. Each custom coin is backed up by a guarantee in the form of a certain amount of DEL. The size of this guarantee in relation to the total issue of a custom coin directly affects the value curve of this coin.
The CRR parameter when creating a coin The CRR parameter is set when creating coins and then the value curve remains unchanged forever. When market conditions and the supply/demand balance change, the value of the coin moves along the calculated curve, up or down.
Formulas for determining the value of coins The key parameters in the Decimal network are: 1.Reserve 2.CRR 3.The total number of coins issued.
All of them are involved in calculating the cost of buying or selling. The very existence of two formulas is a consequence of the nonlinear nature of the change in the value of coins.
Calculating the cost of buying a coin where
Reserve - current reserve in DEL; Want to buy - the number of coins to buy;Issue - the total number of coins; CRR - the coefficient of Constant Ratio to the Reserve (for example, 20 for 20%)
Calculating the cost of selling a coin Sale Amount = Reserve * (1 — (1 — Want to sell/Issue) ^ (100/ CRR)) where Reserve - the current reserve in DEL; Want to sell - the number of coins for sale;Issue - the total number of coins; CRR - the coefficient of Constant Ratio to the Reserve (for example, 20 for 20%)
Calculation of the current price of 1 coin Price = Reserve * (1-(1-1/Issue)^ (100 / CRR)) where Reserve - current reserve in DEL;Issue - the total number of coins; CRR - the coefficient of a Constant Ratio to the Reserve (for example, 20 for 20%).